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“SaaS sprawl is a natural consequence of the SaaS revolution. An analysis of Okta’s 2020 customer database revealed that companies employing 2,000 or more individuals maintained an inventory of 175 SaaS apps on average” – TechCrunch
The infamous phenomenon that is software sprawl, occurs when the quantity of applications or software components in an environment experiences rapid growth and fluctuations, leading to a substantial rise in complexity and rendering traditional software management approaches ineffective.
In the fast-paced world of technology, businesses often find themselves grappling with the challenges of uncontrolled proliferation of software applications across an organization. Suffice to say that this seemingly innocuous issue can significantly impact Return on Investment (ROI) if left unaddressed.
In this blog, we explore how software sprawl negatively affects ROI and highlight 5 powerful strategies for optimizing software licensing through consolidation, expert guidance and licensing discounts.
Walk Me’s 2022 - 2023 State of Digital Adoption Report showed that large enterprises are spending over $246 million pursuing strategic goals with digital transformation, IT and software spend being the majority portion.
Surveys from this same report showed that large enterprises spend an estimate of over $104 million on their digital transformation and software.
On average, businesses deploy 89 different applications, with enterprises having as many as 187. However, 30% of these apps are either duplicative or provide no evident value.
These findings conclude that many businesses are overspending by millions on software they don’t even need.
Redundancy and Overlapping Functionality
Multiple software tools with overlapping features can lead to redundancy, increasing operational costs without providing proportional benefits.
Inefficient workflows
Workers toggle between different applications approximately 1,200 times a day, resulting in nearly four hours of wasted productivity weekly and increased frustration leading to higher turnover rates.
Licensing Expenses
Unmanaged software sprawl often results in unnecessary licensing expenses, as organizations may invest in more licenses than required for their actual usage.
Integration Challenges
Disparate software systems may struggle to integrate seamlessly, causing increased IT support costs and further workflow disruptions as previously mentioned.
Building a Strategic Approach
In the pursuit of organizational efficiency and streamlined operations, consider these five key strategies to optimize your software ecosystem:
As seasoned veterans of successful digital transformation projects, we help ensure you have the software you need with a measurable return on investment. By leveraging our team you free your company from the clutches of software sprawl through the following advantages:
Managed Solution provides a centralized platform for overseeing software assets, enabling efficient monitoring, updates, and compliance management.
By leveraging our experts, Managed Solution can facilitate the consolidation and efficient management of software applications. Our proactive approach empowers organizations to negotiate more favorable licensing deals, capitalizing on volume discounts and ultimately optimizing costs associated with software usage.
At Managed Solution, we have mastered the art of analyzing our client’s software environments to build better strategies and provide ample guidance and resources to maximize their cost efficiencies.
Managed Solution will enforce security protocols and ensure compliance with licensing agreements, reducing the risk of legal and financial consequences.
Tackling software sprawl is a strategic imperative when building a robust ROI for your technology. Through consolidation, expert guidance and licensing discounts, organizations can not only cut unnecessary expenses but also enhance efficiency, security, and compliance.
If you would like to learn more about how Managed Solution can help you overcome the costs of software sprawl, chat with one of our experts here.
Leaning on a managed IT services provider (MSP) for a subset of your IT services can be a boon. More than just tackling specific domains like email hosting or customer relationship management, having an MSP as part of your IT mix can free up internal IT staff for more strategic projects.
But establishing a strong, strategic partnership with your MSP is essential. Here we take a look at the current state of managed IT services, where companies are employing the MSP model, and how to get the most out of your MSP partnership.
Managed services comprise the second-most popular business model in the channel today, according to IT industry trade association CompTIA's Fifth Annual Trends in Managed Services study.
Three-in-10 MSPs surveyed by CompTIA ranked managed services as the leading generator of revenue in the previous 12 months, second to the 44 percent that pointed to IT solutions (such as projects incorporating hardware, software, and services), but ahead of other business model choices like value-added resellers (VARs), IT support, and help desk and consulting services.
The study, authored by Carolyn April, senior director of industry analysis at CompTIA, found that the rate of growth of managed services is continuing, but more or less at a steady pace.
"I think the managed services space is moving slowly at sort of the same pace as we've seen over the past five years," April says. "Where we're seeing more momentum right now is the channel that's growing around SaaS applications and SaaS ISVs."
"A lot of these SaaS players are actually MSPs themselves: They've either been born in the cloud or they are existing MSPs that are adding a SaaS component to what they sell in their portfolio," she adds.
Organizations are continuing to turn to MSPs to handle elements of their IT needs as part of a collaborative arrangement with the internal IT department, according to CompTIA’s research. Companies have become more familiar with managed services and are turning to them for certain IT functions, particularly email hosting, customer relationship management (CRM) applications, storage, backup and recovery, and network monitoring.
However, CompTIA is also seeing commoditization occurring because of oversupply, especially at the lower end of the stack. April says this may tempt CIOs to bargain shop for managed services, but they should resist the urge.
"Look for MSPs that understand your business and that speak less about the technology," she says. "I think that's important across the board. You want a partner that can talk about business outcomes and how their services are going to help further your goals from a business perspective, not a technology perspective."
Here, April says a proven track record is key — especially customer testimonials from existing customers. She warns that it should be a red flag if an MSP offers you a cookie-cutter service-level agreement (SLA). It's a much better sign if they seek to craft a customized contract based on your business and needs.
Strategic MSP use doesn’t have to be confined to commodity IT services. Many CIOs, says April, are looking for MSPs that can deliver advanced services, including cloud infrastructure management, application management, and business process outsourcing.
Modern MSPs offer comprehensive cloud services, including cloud migration, management, and optimization. They help businesses leverage cloud platforms such as AWS, Azure, and Google Cloud for improved scalability, flexibility, and cost savings. Additionally, they provide robust cybersecurity solutions, including advanced threat detection and response, managed firewalls, encryption, and regular security assessments.
April also notes increased demand for services around data analytics, business intelligence (BI), and advanced application monitoring. And while some upper echelon services are offering managed services to meet those needs, most MSPs have yet to extend beyond their heritage in managing network infrastructure and basic software infrastructure.
Utilizing automation and artificial intelligence to streamline operations, modern MSPs can proactively manage and maintain IT environments, predict and prevent issues, and improve service delivery efficiency.
"I think mobile is an area where the channel is getting some traction but they're really not tapping the full opportunity there," she adds.
It is also important to note that while companies are increasingly relying on outside providers for part of their IT needs, MSPs generally complement rather than replace internal IT.
"Very few of these companies get rid of their IT staffs just because they join up with an MSP," April says.
Instead, especially in larger companies, bringing an MSP into the mix frees up existing IT staff to focus on more strategic projects. Proactive monitoring and maintenance by modern MSPs ensure maximum uptime and reliability, while scalable solutions grow with clients' needs, providing flexible service models customized to specific requirements and budgets.
"It elevates the IT staff and brings them out of the shadows within the organization," she says. "It allows them to focus on a custom app dev project or cloud initiative — something highly strategic. I think that's a win-win for your IT staff."
A top-tier Managed IT Services Provider will align their services with their clients' business goals, helping them achieve desired outcomes such as increased productivity, cost savings, and competitive advantage. They assist clients in meeting industry-specific regulatory requirements and standards, ensuring that IT practices are in line with compliance mandates like GDPR, HIPAA, and PCI-DSS.
That also highlights that the reasons organizations turn to MSPs have begun to change. In the past, April says, cost savings were seen as the primary benefit of MSPs. Now, cost benefits are considered table stakes, and customers are looking for additional benefits like generating revenue and helping the company become more efficient.
Even security has evolved from being considered a roadblock to using MSPs to a reason for doing so. April explains that companies have shifted their views over security as it has become clear that security problems are often the result of human error by internal staff.
Modern MSPs prioritize customer satisfaction, offering personalized services, transparent communication, and a partnership mentality. They focus on building long-term relationships and understanding their clients' unique needs.
By staying current with the latest technological advancements and trends, such as the Internet of Things (IoT), edge computing, and blockchain, MSPs integrate these technologies into their service offerings to provide cutting-edge solutions.
MSPs can provide robust support for remote and hybrid work environments, ensuring that employees can securely and efficiently work from anywhere with access to necessary resources and tools.
By leveraging the capabilities of a modern managed IT services provider, businesses can achieve a more strategic, efficient, and secure IT environment, positioning themselves for success in an increasingly digital landscape.
The Power BI Team is excited to highlight a new story blog series of notable ISVs who have integrated Power BI Embedded into their offerings to differentiate and innovate their solutions. Our immediate story post comes from Aluvii, which offers SaaS POS solution for amusement parks and leisure facilities. With Power BI Embedded, Aluvii aims to stand apart from the competition, bringing rich data visualization to life all inside their application offerings. How did they integrate Power BI Embedded into their product offering? Read more below, and stay tuned for additional story posts coming your way.
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